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4 WHAT IS PRODUCT LIFE CYCLE DEVELOPMENT INTRODUCTION GROWTH MATURITY SATURATION DECLINE,DEATH WITHDRAWAL There are 7’s stage of every product

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www.DreamzInternational.biz The product life cycle concept is the explanation of product from birth to death as product exits in different stage and in different competitive environment . PRODUCT LIFE CYCLE Not all product go to the all stages some fail in the initial stages other may reach the maturity stages after a long time.

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1. DEVELOPMENT STAGE Product development is the 1st stage of PLC in this stage company finds and develops A new product idea.during this stage of product sales are zero and there is only investment SOURCE OF NEW PRODUCT IDEA Internal sources External sources 1.R&D 2.Manufacturing people 3.Sales people 4.Top management 1.Customers 2.Competitors 3.Foreign market 4.Resellers

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2.INTRODUTION This stage of the product life cycle ,it is put in the market with full-scale of prodution and marketing programe.it is period when sales grow at low rate at that time firm generally suffer losses become of heavy development and promotional expenses. CHARACTERISTICS,FEATURES 1.Cost are very high 2.Slow sales volume to start 3.Heavy promotional expenses 4.Lack of knowledge 5.Demand is low STRATEGIES 1.Make proper advertinging before the product is launched in the market. 2.Selective distribution and attractive discount to dealers.

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3.GROWTH It is third stage of PLC, sales begin to rise. it is a period of rapid market acceptance and increasing profits. CHARACTERISTICS ,FEATURES 1.Rapid increase in sales 2.Increasen in compettion 3.Average cost per customers 4.Rising profit 6.Redution in price STRATEGIES 1.Improve the product quality. 2.Add new product features. 3.Enter into new market area. 4.Increase promotional activities.

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4.MATURITY During this stage sales continue to increase but at decreasing rate while sales curve is leveling Off.the profit of both the manufacture and the retailers are starting to decline because of rising Expenditure and lowering of price. CHARACTERISTIC ,FEATURES 1.Sales increase at decreasing rater 2.Low price 3.Normal promotional expenses 4.Profit decrease STRATEGIES 1.Improve the quality of the product and introduce some new model. 2.Try to convert non-user into users of the product. 3.Introduce new packing. 4.If the unit price is high ,companys give the product to instalment basis. 5.Change in the style and design of the product.

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5.SAURATION During this stage sales are at its peak.product is full matured,Replacemant sale dominate The market. Every marketer tries to maximize the time period of this stage ,because after This the product follow the path of decline. CHARACTERISTICS FEATURES 1.Sales of substitute product in the market start to rising.

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It is the period when sales fall off and profit drop. CHARACTERISTICS,FEATURES 6.DECLINE 1.No promotional expenses 2.Further decrease in price 3.Furtther decrease in sales STRATEGIES R& D efforts are increased to innovate the new product. Packing may be made more attractive . Adopt selective promotion of the product to reduce distribution cost.

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DEVELOPMENT INTRODUTION GROWTH MATURITY DECLINE SATURATION TIME PERIOD SALE AND PROFIT PROFIT SALES O PRODUCER CONTROL MARKET CONTROL PRODUCT LIFE CYCLE LONGEST STAGE